Twitter Beats - Revenue Rises 74%
July 23, 2021
Twitter reported financial results for its second quarter 2021.
The social media player had earnings: 20 cents per share, adjusted with
only 7 cents expected. On the revenue line, the firm took in $1.19
billion with only. $1.07 billion expected. Twiiters' Monetizable daily
active users (mDAUs) were 206 million vs. 206.2 million which was sought
"As we enter the second half of 2021, we are shipping more, learning
faster, and hiring remarkable talent," said Jack Dorsey, Twitter's CEO.
"For example, our increased shipping cadence contributed to reaching 206
million average monetizable DAU (mDAU) in Q2, up 11% year over year and
3% quarter over quarter. There's a tremendous opportunity to get the
whole world to use Twitter."
"We delivered better-than-expected performance across all major products
and geographies while growing our audience," said Ned Segal, Twitter's
CFO. "We continued to make significant progress on our direct response
and brand products with updated ad formats, improved measurement, and
better prediction. We are driving more value for advertisers with our
strong push into performance-based advertising and expanded offerings
for small and medium-sized businesses."
Second Quarter 2021 Operational and
Except as otherwise stated, all financial results discussed below
are presented in accordance with generally accepted accounting
principles in the United States of America,
or GAAP. As supplemental information, we have provided certain non-GAAP
financial measures in this press release's supplemental tables, and
such supplemental tables include a reconciliation of these non-GAAP
measures to our GAAP results. The sum of individual metrics may not
always equal total amounts indicated due to rounding.
- Q2 revenue totaled
$1.19 billion, an increase of 74%
year over year.
- Advertising revenue
totaled $1.05 billion, an
increase of 87% year over year, or 85% on a constant
- Total ad engagements
increased 32% year over year.
- Cost per engagement (CPE)
increased 42% year over year.
- Data licensing and other
revenue totaled $137 million,
an increase of 13% year over year.
- US revenue totaled
$653 million, an increase of
79% year over year.
- International revenue
totaled $537 million, an
increase of 69% year over year, or 64% on a constant
costs and expenses totaled $1.16 billion,
an increase of 21% year over year. This resulted in operating
income of $30 million and 3%
operating margin, compared to an operating loss of
$274 million, or -40% operating
margin for the same period in 2020. The year ago period
includes a non-recurring expense of $150
million related to an ongoing FTC matter.
- Stock-based compensation
(SBC) expense grew 34% year over year to
$178 million and was approximately 15% of total revenue.
- Q2 net income was
$66 million, representing a net
margin of 6% and diluted EPS of $0.08.
This compares to a net loss of $1.38
billion, a net margin of -202%, and diluted EPS of
($1.75) in the same period of the
previous year. Excluding the impact of the income tax expense
due to the establishment of a valuation allowance driven
primarily by COVID-19, Q2 2020 adjusted net loss was
$277 million, representing an
adjusted net margin of -40% and adjusted diluted EPS of
- Net cash provided by
operating activities in the quarter was
$382 million, compared to $201
million in the same period last year. Capital
expenditures totaled $276 million,
compared to $162 million in the
same period last year, driven by infrastructure investments in
data center build-outs to support audience growth and product
- Average monetizable daily
active users (mDAU) were 206 million for Q2, compared to 186
million in the same period of the previous year and compared to
199 million in the previous quarter.
- Average US mDAU were 37
million for Q2, compared to 36 million in the same period of
the previous year and 38 million in the previous quarter.
- Average international
mDAU were 169 million for Q2, compared to 150 million in the
same period of the previous year and 162 million in the
Given our execution and confidence
in our strategy as we enter the second half of the year, we're
updating our outlook for expense growth and revenue. We now expect
headcount, along with total costs and expenses, to grow 30% or more
for the full year of 2021 with a focus on engineering and product.
As you'd expect, incremental headcount investments in 2021 will flow
into our annual expense base in 2022. We continue to expect total
revenue to grow faster than expenses in 2021 — assuming the global
pandemic continues to improve and that we continue to see modest
impact from the rollout of changes associated with iOS 14.5. How
much faster will depend on various factors, including our execution
on our direct response roadmap and macroeconomic factors.
- Total revenue is expected to
be between $1.22 billion and
- GAAP operating income is
expected to be between a loss of $50
million and break even.
- Stock-based compensation
expense is expected to be approximately
- Capital expenditures are
expected to be between $900 million
and $950 million.